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Flex Spending Accounts provide you with the opportunity to pay for certain
dependent and health care expenses using pre-tax dollars. Participating in a
flex spending account is voluntary — you decide to have a specified amount
of pre-tax dollars deducted from your paycheck each pay period. These dollars
are subtracted from your gross earnings before taxes and then contributed to a
reimbursement account established in your name.
Because of the tax advantages of flex spending accounts, the IRS has imposed
limitations on the use of before-tax contributions. One IRS rule, commonly
referred to as the "use it or lose it" rule, requires a forfeiture of any
amounts credited to your account which are not used to pay eligible expenses
during the plan year. If you wish to participate in these programs, carefully
estimate the costs of your dependent care and health care expenses during the
plan year before deciding on the amount to contribute.
Dependent Care Advantage Account
The
Dependent Care
Advantage Account (DCAAccount) is a negotiated benefit that helps you
pay your child, elder or dependent disabled care expenses. For an enrollment kit, call 1-800-358-7202 or visit:
www.flexspend.state.ny.us. Enrollment applications
must be submitted: within the first 60 days following your
appointment, or when you experience a valid change in status, or during the
annual open enrollment period.
HealthCare Spending Account
The
HealthCare Spending Account
(HCSAccount)helps you pay for medical, dental,
vision & hearing expenses that are not reimbursed by your health
insurance plan. If you meet the eligibility requirements, you
become eligible to participate after you have completed 60 days of
service. For more information about eligibility and enrollment
options, call 1-800-358-7202 or go the web site at
www.flexspend.state.ny.us. Enrollment applications must
be submitted within the first 60 days following your appointment or during the
annual open enrollment period.
Eligibility
Requirements, Effective Date, Cost
- Must be receiving regular
biweekly paychecks for dependent care. Must also be eligible
for health insurance.
- For dependent care, effective
immediately; must enroll within 60 days of appointment. For
health care, 60 days from date of appointment.
- The employee determines the
amount to be deducted, maximum $5,000 for child/elder care;
minimum $150, maximum $3,000 for health care.
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